Economy

China Trade Deal: Will Trump’s Agreement Resolve the Trade War?

US & China reached a trade deal framework. Tariffs may be avoided. Includes rare earths, soybeans, & TikTok.

byEditorial Staff

October 26, 2025, 12:21 PM

US and China flags in front of diplomats shaking hands during negotiations.

Flags of China and the US on a table during negotiations. By Melnikov Dmitriy / Shutterstock.com.

Executive Summary

The United States and China have agreed on a preliminary framework for a trade deal, covering TikTok’s US operations, rare earth minerals, and soybean purchases, to be discussed by President Donald Trump and Chinese President Xi Jinping.

The agreement includes China deferring tightened controls on rare earth minerals exports for a year and resuming substantial purchases of US soybeans.

A deal regarding the US operations of the video-sharing platform TikTok has been agreed upon, aimed at separating its American business from its Chinese parent company, ByteDance, due to national security concerns.

The Story So Far

The United States and China have been engaged in an ongoing trade war, initiated by President Trump’s imposition of tariffs aimed at boosting US manufacturing, which led to retaliatory measures from Beijing. This dispute has created significant economic tensions, prompting negotiations focused on resolving critical issues such as China’s control over rare earth minerals, the impact on US soybean farmers from previous boycotts, and US national security concerns regarding the operations of the video-sharing platform TikTok.

Why This Matters

This preliminary trade framework between the US and China signifies a crucial step towards de-escalating their ongoing dispute, averting previously threatened tariffs and offering targeted relief to key economic sectors. The agreement, which includes China deferring tightened controls on rare earth minerals and resuming substantial purchases of US soybeans, is set to stabilize critical supply chains and provide much-needed support to American farmers. Additionally, the reported deal concerning TikTok’s US operations addresses national security concerns, collectively reducing economic uncertainty and fostering more stable relations between the world’s two largest economies.

Who Thinks What?

US Trade Secretary Scott Bessent indicates the preliminary framework will de-escalate the trade dispute, prevent threatened tariffs, and bring relief to the agricultural sector through soybean purchases, while addressing national security concerns regarding TikTok.

Beijing described the trade discussions as “constructive” and has agreed to defer tightened controls on rare earth mineral exports and resume substantial purchases of US soybeans, signaling a move towards stabilizing economic relations.

President Donald Trump’s administration views the framework as a significant effort to avert further escalation of the trade war and stabilize economic relations, aligning with his goals of boosting US manufacturing and jobs, and addressing national security.

The United States and China have agreed on a preliminary framework for a trade deal, aimed at de-escalating their ongoing trade dispute, according to US Trade Secretary Scott Bessent. The agreement, which includes provisions on TikTok’s US operations, rare earth minerals, and soybean purchases, is set to be discussed by President Donald Trump and Chinese President Xi Jinping during their meeting on Thursday in South Korea.

Trade Deal Details Emerge

The framework was established during discussions between Mr. Bessent and senior Chinese trade officials on the sidelines of the Association of Southeast Asian Nations (Asean) summit in Malaysia. Beijing described these discussions as “constructive.” Mr. Bessent indicated to CBS that the 100% tariffs on Chinese goods previously threatened by President Trump are now not anticipated to be implemented.

A key aspect of the agreement involves China agreeing to defer its tightened controls on rare earth minerals exports for a year. China processes approximately 90% of the world’s rare earths, which are critical components in numerous electronic products, making their supply a significant bargaining chip in trade negotiations.

Agricultural and Tech Sector Agreements

China is also expected to resume substantial purchases of US soybeans, a move aimed at addressing concerns from American farmers who have been significantly impacted by previous boycotts. Mr. Bessent, identifying as a soybean farmer, expressed optimism that the deal would bring relief to the agricultural sector for the current and coming seasons.

Furthermore, a deal regarding the US operations of the video-sharing platform TikTok has reportedly been agreed upon. The US has sought to separate TikTok’s American business from its Chinese parent company, ByteDance, citing national security concerns. President Trump had previously delayed a ban on the app multiple times to facilitate negotiations, extending the deadline again to December.

Context of the Trade War

The two nations have been engaged in a trade war, with President Trump imposing and threatening tariffs, arguing such policies would boost US manufacturing and jobs. Beijing has responded with its own countermeasures. This preliminary framework represents a significant effort to avert further escalation and stabilize economic relations between the world’s two largest economies.